Chapter 1

Question 1

situations in which the leader is the key force determining the organization’s success— or lack thereof.

Answer 1

romantic view of leadership

Question 2

situations in which external forces—where the leader has limited influence—determine the organization’s success

Answer 2

external control view of leadership

Question 3

the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages.

Answer 3

strategic management

Question 4

The ideas, decisions, and actions that enable a firm to succeed.

Answer 4

strategy

Question 5

A firm’s resources and capabilities that enable it to overcome the competitive forces in its industry(ies).

Answer 5

competitive advantage

Question 6

performing similar activities better than rivals.

Answer 6

operational effectiveness

Question 7

It is possible only by performing different activities from rivals or performing similar activities in different ways.

Answer 7

Sustainable competitive advantage

Question 8

Key Attributes of Strategic Management

Answer 8

Directs the organization toward overall goals and objectives.
Includes multiple stakeholders in decision making.
Needs to incorporate short-term and long-term perspectives.
Recognizes trade-offs between efficiency and effectiveness.

Question 9

individuals, groups, and organizations who have a stake in the success of the organization, including owners (shareholders in a publicly held corporation), employees, customers, suppliers, and the community at large.

Answer 9

stakeholders

Question 10

tailoring actions to the needs of an organization rather than wasting effort, or “doing the right thing.”

Answer 10

effectiveness

Question 11

performing actions at a low cost relative to a benchmark, or “doing things right.”

Answer 11

efficiency

Question 12

managers must maintain both a vision for the future of the organization as well as a focus on its present operating needs.

Answer 12

creative tension

Question 13

the challenge managers face of both aligning resources to take advantage of existing product markets as well as proactively exploring new opportunities.

Answer 13

ambidexterity

Question 14

strategy analysis, strategy formulation, and strategy implementation

Answer 14

strategic management process

Question 15

strategy in which organizational decisions are determined only by analysis.

Answer 15

intended strategy

Question 16

strategy in which organizational decisions are determined by both analysis and unforeseen environmental developments, unanticipated resource constraints, and/or changes in managerial preferences.

Answer 16

realized strategy

Question 17

study of firms’ external and internal environments, and their fit with organizational vision and goals.

Answer 17

strategy analysis

Question 18

decisions made by firms regarding investments, commitments, and other aspects of operations that create and sustain competitive advantage.

Answer 18

strategy formulation

Question 19

actions made by firms that carry out the formulated strategy, including strategic controls, organizational design, and leadership.

Answer 19

strategy implementation

Question 20

the relationship among various participants in determining the direction and performance of corporations. The primary participants are (1) the shareholders, (2) the management (led by the chief executive officer), and (3) the board of directors.

Answer 20

corporate governance

Question 21

a firm’s strategy for recognizing and responding to the interests of all its salient stakeholders.

Answer 21

stakeholder management

Question 22

the various stakeholders compete for the organization’s resources: the gain of one individual or group is the loss of another individual or group.

Answer 22

zero sum

Question 23

which recognizes that stakeholders are dependent upon each other for their success and well-being

Answer 23

stakeholder symbiosis

Question 24

the expectation that businesses or individuals will strive to improve the overall welfare of society.

Answer 24

social responsibility

Question 25

assessment of a firm’s financial, social, and environmental performance.

Answer 25

triple bottom line

Question 26

organizational goals ranging from, at the top, those that are less specific yet able to evoke powerful and compelling mental images, to, at the bottom, those that are more specific and measurable.

Answer 26

hierarchy of goals

Question 27

organizational goal(s) that evoke(s) powerful and compelling mental images.

Answer 27

vision

Question 28

a set of organizational goals that include both the purpose of the organization, its scope of operations, and the basis of its competitive advantage.

Answer 28

mission statement

Question 29

A set of organizational goals that are used to operationalize the mission statement and that are specific and cover a welldefined time frame.

Answer 29

strategic objectives

Question 30

.There must be at least one indicator (or yardstick) that measures progress against fulfilling the objective.

Answer 30

Measurable

Question 31

This provides a clear message as to what needs to be accomplished.

Answer 31

Specific

Question 32

It must be consistent with the organization’s vision and mission.

Answer 32

Appropriate

Question 33

It must be an achievable target given the organization’s capabilities and opportunities in the environment. In essence, it must be challenging but doable.

Answer 33

Realistic

Question 34

There must be a time frame for achieving the objective.

Answer 34

Timely.